Skippr Blog

How many banks are operating in Australia? You’re probably thinking there are at most 20 banks. You would be very wrong. There are actually thousands, possibly hundreds of thousandsof banks in Australia. ‘How is this so?’ I hear you ask. Well, every time your customer makes you wait for an invoice payment, you have effectively become a banker - presumably without the six-figure bonus or Ferrari.

“Everybody has a plan until they get punched in the face.”- Mike Tyson

Have you ever noticed how your budgeted projections don't look anything like your historical numbers? Projections tend to resemble a calm blue ocean however historical numbers look more like a tumultuous pot of troubled energy. The world is a volatile place, especially for small businesses. Despite this, we have a tendency to create smooth forecasts that rarely reflect reality. This is partly why SMEs frequently get blindsided by cash flow problems.

Having foresight over your monthly cash flow statement is critical to the survival and success of your business. Every business owner should be asking the following questions to best understand how to do a cash flow forecast for their small business: